TfL bought out of Shard to make way for richer tenants

TRANSPORT for London (TfL) has accepted a multi-million pound payment in exchange for abandoning plans to move into the Shard of Glass development near London Bridge in 2012.

The building’s owners, Sellar Property and the Qatar Central Bank, bought back TfL’s lease to allow them to cash in on rising rent prices in the capital.

TfL was due to occupy 200,000 sq ft of office space in the biggest building in the London Bridge Quarter development, after agreeing to pay £38.50 per sq ft in 2006. Recent property deals have seen prices in excess of £60 per sq ft.

A spokesman for London Bridge Quarter said: “This agreement enables us to position the Shard at the very top end of the London office market. Together, the Shard and London Bridge Place will deliver more than one million square feet of Grade A offices located on one of London’s busiest transport hubs in a landmark building of the highest quality.”

TfL said in a statement that the deal would contribute “a multi-million-pound cash sum to TfL’s established efficiency savings programme” but would not specify an amount.

The Shard’s only other pre-let agreement, with hotel chain Shangri La, remains in place. The 80-storey, 310m skyscraper is due for completion in May 2012. It is part of a £2bn project near London Bridge station which includes offices and shops.